Tug-of-war over mayor’s tax proposals continues

Supervisor John Avalos to mayor: sorry, can’t squeeze you into the calendar just yet

Earlier this week, it sounded like Mayor Gavin Newsom was finally going to get his budget committee hearing on three business-friendly tax measures he announced during last month’s State of the City speech.

Supervisor John Avalos, chair of the budget committee, said today the measures won’t be heard until Feb 17 or 24 because he still doesn’t have a report from the city’s economist on the impact of waiving the payroll tax on new hires for all companies for two years.

“I’m happy to schedule it when all the homework is done,” Avalos said. “It’s definitely not next week.”

Also, Supervisor Michela Alioto-Pier, who is in the hospital with a leg injury and doesn’t know when she’ll return to City Hall, today asked Avalos not to schedule a hearing on her legislation extending the payroll tax exemption for biotech companies until she asks for one when she’s better.

We told you today she’s steamed at what she views as the mayor hijacking legislation she introduced in November. (The third piece of his tax package is a $2,000 tax credit for small businesses to offset healthcare costs, and he’s asked that the three be heard together as soon as possible.)

“Michela’s the sponsor, and I’m going to follow what the sponsor says, not what Mayor Newsom says on this,” Avalos said. “She’s my colleague, and it’s important for us to give each other that respect especially when someone’s ill.”

UPDATE: Tony Winnicker, spokesman for Newsom, said of Avalos’ delay in calendaring the items: “It feels a little like we’re watching a pot that’s never going to boil. The people who are most hurt by these delays are small businesses and San Franciscans who are out of work.”

He added that the mayor accepts Alioto-Pier’s wish to delay the biotech exemption until her return to work and “we hope that day comes soon.”